Menulog ceases operations in Australia – that’s one less option in the home food-delivery sector for lazy diners to choose from

Menulog has announced that it is ceasing operations in Australia as it has been “navigating challenging circumstances”. The decision has been described as strategic, aligning with its parent company’s focus on other markets.

The optin Australia is intensely competitive, with multiple players fighting for market share – including Uber Eats, Hello Fresh, Marley Spoon, and Deliveroo. Analysts say platforms need scale to be profitable, which is difficult in a smaller market and on the world scale, Australia’s population equates a relatively small market.

The shutdown will affect about 120 employees in Australia, plus couriers who work on the platform, with transition or redundancy payments being offered.

The model for gig economy platforms remains under strain from rising costs, regulatory scrutiny and fluctuating demand.

Menulog is part of Just Eat Takeaway.com, and the closure is being framed as part of a broader strategy to focus resources on markets where they believe growth and returns are stronger.

Other home food-delivery companies may follow suit as it appears there is currently an over-competitive, low-margin market, with plenty of cost and structural pressures, let alone complaints from gig workers themselves.

In the past, Menulog has featured pop artists promoting its brand, including the likes of Snoop Dogg, Katy Perry, Christina Aguilera, and more recently Australian artists Bliss n Eso, Baker Boy, and Big Twisty.

Perhaps if the brand stopped paying the big bucks to pop and hip-hop stars, it might have had reasonable funds to continue operations down under.

Antonino Tati

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